Posts

The Exempt Market – Finding “Opportunities” For Your Portfolio

Hello, I’m Shannon Pineau…

and I’m a Dealing Representative with WhiteHaven Securities Inc. – an Exempt Market Dealer.

Now if that just made sense to you, you can likely jump ahead in my blog posts a little but if you’re like most – you may not know a lot about private investing in the Exempt Market in Canada. And that’s just fine because that’s what I’m here for – to tell you all about it.

When you start looking for options to fill the higher risk “opportunity” portion of your portfolio – you’ll soon find that there are MANY options to choose from.  From higher risk stock market plays, to foreign real estate investments, to network marketing, to investing in a friends & family venture, to various “get rich quick” schemes…there are no end to the possibilities.  Unfortunately,  the majority of investors don’t have the time or the expertise to properly investigate these opportunities which can often lead to losses and an overall bad taste for higher risk investments.

There is a much better alternative though, and that is the Exempt Market.

Throughout my blog, I will cover all kinds of topics to explain the Exempt Market – in layman’s terms – and I will try to keep it short, sweet and interesting.

Depending on your level of investing experience, you can decide how much time you want to spend in the Exempt Market 101 category. For those that are new to private investing overall, I really think this will give you a great introduction and for those who are more experienced, there will be lots of other topics to follow.

If  a higher risk/potentially higher reward investment is suitable for your portfolio – my goal will be to give you all of the information you need to consider the Exempt Market.

Armed with this information:

a) you can find those higher returns
b) you can clearly see the risks and rewards involved in achieving those higher returns

And back to my “most people don’t have a lot of time” point – I also want to make sure you can find everything you need in one place.

Canada’s Exempt Market can be a great place to find those excellent investment opportunities that haven’t always been available to the average investor – BUT – there’s more to the story!  If you want to continue on through all of my Exempt Market posts you can click on to the next one, “The Exempt Market – Why Is It Called That?”

I am very happy to have this strategy to offer to my clients.  If you want to talk more specifically about the Exempt Market issuers that I offer through my EMD, WhiteHaven Securities – contact me.

Thanks for reading!

 

Shannon Pineau
Exempt Market Dealing Representative

E: shannon@whitehaven.ca
C: 403-872-4010 TF: 1-855-872-4010

shannonpineau.com

This blog post is intended for information purposes only and does not constitute an offer to sell or a solicitation to buy securities. No securities regulatory authority or regulator has assessed the merits of the information herein or reviewed the information contained herein. This blog post is not intended to assist you in making any investment decision regarding the purchase of securities. Rather, the Trust has prepared an offering memorandum for delivery to prospective investors that describes certain terms, conditions and risks of the investment and certain rights that you may have. You should review the offering memorandum with your professional adviser(s) before making any investment decision. This blog post and the accompanying offering memorandum are intended for delivery only to, and participation in the investment is restricted to, investors to whom certain prospectus exemptions apply, as described in the offering memorandum.

Why Consider Private Wealth Strategies?

 

The Private Wealth Strategies that I have available generally fall into two categories:

 – Private Portfolio Management companies that have varying levels of risk and can manage the bulk of your portfolio.

 – Exempt Market offerings that are higher risk but offer the potential for higher reward and can potentially make up a smaller portion of your portfolio.

Private Wealth Strategies are not mainstream, and it can be a little more difficult to find an experienced professional that works in the Private Investment markets to explain everything to you.

So why go through the effort you wonder to yourself?  What do Private Wealth Strategies have to offer that can make it worthwhile?  Why do investors go the extra mile to find and invest in these kinds of products?

 

To try and make more money of course! 

 

It’s almost every investor’s goal and it can mean more than just finding an investment with projected, overall higher returns.  With all of the volatility in the public stock markets today, Investors are also looking for diversification in their portfolios which they hope will also lead to some consistency in their returns.

Private Wealth Strategies can potentially help investors achieve these goals in a few key ways:

– With Private Portfolio Management you have experienced private companies that can use alternatives in their portfolios to achieve downside protection. This can lead to solid and more consistent returns for clients over time.

– In the Exempt Market, you have higher risk for potentially much higher than average returns. There are many factors to consider here before ever making an investment but overall, this is a well-regulated space with quality issuers which can make it a good choice for a smaller portion of your portfolio.

 

To Sum Up:

Apart from a few guaranteed investing products that generally pay very low interest, investing comes with risks and there are no guarantees.

Overall, I would say that investors want to earn good returns on their investments so they can live well today and also fund (or maintain) a great retirement.

It’s always easiest to stay in mainstream, traditional investments to try and achieve your financial goals but it has been my experience that mainstream investments often equal mainstream results.

 

By searching a little further you have found the Private Investment markets and you’ve also found an experienced professional that can help you navigate them.

Please contact me anytime and I look forward to talking more about your financial goals.  I’ll explain private investing to you in an easy to follow format and then we’ll look at the Private Wealth Strategies that I offer and see if they can add some great benefits to your portfolio.

 

Thanks for reading!

 

P.S. If you’ve just landed on one of my posts for the first time and you want to start at the beginning…visit “Private Wealth Strategies – The Great Investing Alternative.”

 

Shannon Pineau
Exempt Market Dealing Representative

E: shannon@whitehaven.ca
C: 403-872-4010 TF: 1-855-872-4010

shannonpineau.com

 

This blog post is intended for information purposes only and does not constitute an offer to sell or a solicitation to buy securities. No securities regulatory authority or regulator has assessed the merits of the information herein or reviewed the information contained herein. This blog post is not intended to assist you in making any investment decision regarding the purchase of securities. Rather, the Trust has prepared an offering memorandum for delivery to prospective investors that describes certain terms, conditions and risks of the investment and certain rights that you may have. You should review the offering memorandum with your professional adviser(s) before making any investment decision. This blog post and the accompanying offering memorandum are intended for delivery only to, and participation in the investment is restricted to, investors to whom certain prospectus exemptions apply, as described in the offering memorandum.

How Can You Access Private Wealth Strategies?

Private Wealth Strategies can be more difficult to access than traditional investment products such as stocks and mutual funds.

To access Private Wealth Strategies like Private Portfolio Management or private investment funds in the Exempt Market – you have to look outside the big banks and find a professional that works in the Private Investment Markets.

For example – an Exempt Market Dealing Representative such as myself!

The Two Main Private Wealth Strategies:

When it comes to Private Portfolio Managers – they are the experts in their field and they have long track records to demonstrate that.

My role is to find the best Private Portfolio Management companies  and set up referral arrangements with them so that I can offer their services to my clients.  These private companies manage the investment portfolios of many of Canada’s wealthiest families and are generally not available to the average investor.  I can offer you that access.

In the Exempt Market – you need to find a licensed Exempt Market Dealing Representative who has the education AND experience to guide you through these types of investments.  It’s a higher risk space and it’s still relatively new to the “average” investor so it’s important to find someone who can explain it well and make sure these types of investments are suitable for you.

I can help you find the best Private Wealth Strategies to suit your financial needs!

 

– When it comes to Private Portfolio Managers, I have referral relationships with some of the largest and best in the business.  These companies can show you their own track records of results and I can help with the process of investing with them.

 

– In the Exempt Market – I am a licensed Exempt Market Dealing Representative and I work with an excellent Exempt Market Dealer called WhiteHaven Securities.  Most importantly though – in my humble opinion – is that I am very experienced in this market.  I have been offering private investments to my clients since 2007 and for most “average” investors, that’s about as long as private investments have been available to them.  It’s still a very new market to most and there have been many ups and downs, so experience is very important.

 

If you’ve read through some of my other posts – I’m very hopeful that you now have a better understanding of the Private Investment markets in Canada.  Here are two final questions that might be on your mind:

Why Consider Private Wealth Strategies?” – Why would you choose these types of investment opportunities over more traditional options? And…

Are Private Wealth Strategies Too Risky & Can You Lose All Of Your Money?” – Usually the biggest fear in almost anyone’s mind so it’s always good to talk about it.

 

I really appreciate you reading my post!  If you would like to talk further, with no obligation, please contact me today.

Shannon Pineau
Exempt Market Dealing Representative

E: shannon@whitehaven.ca
C: 403-872-4010 TF: 1-855-872-4010

shannonpineau.com

 

This blog post is intended for information purposes only and does not constitute an offer to sell or a solicitation to buy securities. No securities regulatory authority or regulator has assessed the merits of the information herein or reviewed the information contained herein. This blog post is not intended to assist you in making any investment decision regarding the purchase of securities. Rather, the Trust has prepared an offering memorandum for delivery to prospective investors that describes certain terms, conditions and risks of the investment and certain rights that you may have. You should review the offering memorandum with your professional adviser(s) before making any investment decision. This blog post and the accompanying offering memorandum are intended for delivery only to, and participation in the investment is restricted to, investors to whom certain prospectus exemptions apply, as described in the offering memorandum.

 

An 80/20 Approach To Investing – Using Private Wealth Strategies

Previously, I’ve talked about keeping investing simple and starting with an 80/20 approach – with 80% being the more secure “foundation” of your portfolio and 20% being the potentially higher risk “opportunity” portion of your portfolio.

 

To summarize, the majority of investors stick to mutual funds, bonds, GIC’s and individual stocks to fill these two main pieces of their portfolio and save for retirement.

There is nothing wrong with this strategy but, eventually, many investors start looking for better results.

The questions are though:

Where can you find potentially better results?  Where can you find investment strategies that are not mainstream, that can potentially offer higher, more consistent returns, but that also don’t hold too much risk?

The answer to these questions is to consider Private Wealth Strategies and here’s what that might look like in your portfolio…

An 80/20 Approach Using Private Wealth Strategies

Using the 80/20 rule in the private markets means that the “foundation” of your portfolio would be invested with a Private Portfolio Manager and the “opportunity” portion of your portfolio, if suitable, would be invested in the higher risk Exempt Market.

 

Here is a brief summary of the two components:

 – Private Portfolio Managers utilize alternative investing strategies which have the potential to offer stable, more consistent returns over time.  There are portfolios to suit almost any type of investor – from conservative (lower risk) to growth (higher risk).  Private Portfolio Management is a premium investment strategy that would not generally be accessible to the average investor.  In the private investment markets, this can be an excellent choice for the “foundation” portion of your portfolio.

 

– The Exempt Market can be a very good choice for anyone that is looking to fill the “opportunity” portion of their portfolio.  This allocation would be made up of higher risk investments that would ideally provide much higher than average returns.  Finding these types of investments can be difficult for the average investor .  The Exempt Market is well regulated and comes with industry professionals to guide you through it.  It’s still high risk and not suitable for everyone – BUT – if higher risk investments are suitable for a portion of your portfolio, the Exempt Market has some excellent opportunities available.

TO SUM UP:

Private Portfolio Management offers a variety of risk levels and is suitable for almost any level of investor.  80% of your portfolio is always a starting point here but it could be more depending on your age and risk tolerance.  To learn more about Private Portfolio Management please click here.

The Exempt Market is higher risk and 20% is a starting point here as well.  Depending on your age and risk tolerance, this allocation might be far lower and we might find that the Exempt Market is not suitable for you at all.  To learn more about the Exempt Market, please click here.

 

If this all sounds interesting to you, the next question is…”How Can You Access Private Wealth Strategies?

 

I really appreciate you reading my post!  If you would like to talk further, with no obligation, please contact me today.

 

Shannon Pineau
Exempt Market Dealing Representative

E: shannon@whitehaven.ca
C: 403-872-4010 TF: 1-855-872-4010

shannonpineau.com

 

This blog post is intended for information purposes only and does not constitute an offer to sell or a solicitation to buy securities. No securities regulatory authority or regulator has assessed the merits of the information herein or reviewed the information contained herein. This blog post is not intended to assist you in making any investment decision regarding the purchase of securities. Rather, the Trust has prepared an offering memorandum for delivery to prospective investors that describes certain terms, conditions and risks of the investment and certain rights that you may have. You should review the offering memorandum with your professional adviser(s) before making any investment decision. This blog post and the accompanying offering memorandum are intended for delivery only to, and participation in the investment is restricted to, investors to whom certain prospectus exemptions apply, as described in the offering memorandum.

How “Most” People Invest Their Money

In my last post I talked about a very simple approach to investing – using the “foundation” of your portfolio for stability and the “opportunity” portion of your portfolio for potentially higher risk/higher reward investments.

 

There are so many choices when it comes to investing your money and this is where investors often become overwhelmed and, in many cases, fearful.  They don’t have a lot of time to learn about investing and they don’t want to make any mistakes and potentially lose their money.

 

Because of this, most average investors stick to the Public Investment Markets and fill the “foundation” portion of their portfolio with mutual funds, bonds and GIC’s – and then look at a few individual stocks for the “opportunity” portion. ***

 

The main challenge in this plan is that mainstream investments often equal mainstream results.

And while investors want to keep their money safe, at the same time they want to make a good, consistent return on their investments so that they can fund an excellent retirement!

What is the alternative?

The alternative is to invest in Private Wealth Strategies and I’ll show you what “An 80/20 Approach Using Private Wealth Strategies” might look like.

 

  • ***(There can be many variations here – particularly if you have a little more experience with investing.  You might have things like investment real estate in your “foundation” and you could have any number of higher risk ventures within your “opportunity” allocation.  I’m being very general in this post because I feel a great many investors fall into a fairly basic overall investing plan.  And in my opinion – it is ALL good because people are saving, they are investing and they are learning a lot along the way.  And now you’re expanding your knowledge even further with Private Wealth Strategies!)***

 

I really appreciate you reading my post!  If you would like to talk further, with no obligation, please contact me today.

 

Shannon Pineau
Exempt Market Dealing Representative

E: shannon@whitehaven.ca
C: 403-872-4010 TF: 1-855-872-4010

shannonpineau.com

 

This blog post is intended for information purposes only and does not constitute an offer to sell or a solicitation to buy securities. No securities regulatory authority or regulator has assessed the merits of the information herein or reviewed the information contained herein. This blog post is not intended to assist you in making any investment decision regarding the purchase of securities. Rather, the Trust has prepared an offering memorandum for delivery to prospective investors that describes certain terms, conditions and risks of the investment and certain rights that you may have. You should review the offering memorandum with your professional adviser(s) before making any investment decision. This blog post and the accompanying offering memorandum are intended for delivery only to, and participation in the investment is restricted to, investors to whom certain prospectus exemptions apply, as described in the offering memorandum.

Investing: Keeping It Simple At Any Age – An 80/20 Approach

When it comes to investing, I like to keep things simple.  I understand that the majority of people don’t have a lot of time to dedicate to their finances and so it’s important, in my opinion, to follow some key fundamentals.  These include:

Finding quality investment products that you understand and are comfortable with.

– Finding strong investments that can offer solid rates of return.

– Growing your wealth through regular contributions.

– Preserving your wealth when you start to draw on it through retirement.

– Finding an advisor that you trust and feel comfortable with to help you with your investment goals.

THE 80/20 PORTFOLIO

When I first meet with clients, I always start out with an 80/20 approach to investing.  With 80% being the Foundation of your portfolio and 20% being the Opportunity portion of your portfolio.

 

These percentages can change and fluctuate depending on many factors – like your age, time horizon to retirement, risk tolerance and financial objectives –  but it’s a good starting point.   Let’s look at this a little closer.

The Foundation (80%)

The foundation of a portfolio is generally made up of stable, consistent investments that are lower risk in nature.  The foundation is an anchor that provides a sense of stability and direction for a portfolio.  Investors have a higher comfort level here so they take larger, more significant positions.

When I meet with a new client, the foundation portion of their portfolio may be higher than an 80% allocation if they are older or already in retirement – and it might be less than 80% if they are younger and have more time for growth.

The Opportunity (20%)

The opportunity portion of a portfolio can be more aggressive and can take on higher risk for potentially higher returns.  The allocation to the opportunity portion of your portfolio can also fluctuate depending on some of the factors mentioned above.

Now let’s talk about “How Most People Invest Their Money” using this 80/20 strategy and what the alternatives are.

 

I really appreciate you reading my post!  If you would like to talk further, with no obligation, please contact me today.

 

Shannon Pineau
Exempt Market Dealing Representative

E: shannon@whitehaven.ca
C: 403-872-4010 TF: 1-855-872-4010

shannonpineau.com

 

This blog post is intended for information purposes only and does not constitute an offer to sell or a solicitation to buy securities. No securities regulatory authority or regulator has assessed the merits of the information herein or reviewed the information contained herein. This blog post is not intended to assist you in making any investment decision regarding the purchase of securities. Rather, the Trust has prepared an offering memorandum for delivery to prospective investors that describes certain terms, conditions and risks of the investment and certain rights that you may have. You should review the offering memorandum with your professional adviser(s) before making any investment decision. This blog post and the accompanying offering memorandum are intended for delivery only to, and participation in the investment is restricted to, investors to whom certain prospectus exemptions apply, as described in the offering memorandum.

Public vs. Private Investment Markets – What’s The Difference?

The “average” investor in Canada is largely only familiar with the Public Investment Markets.  I’ll break this down in a little more detail in this post but, in general, for anyone that doesn’t have a whole lot of investing experience – the Public Investment Markets are definitely the most familiar and easy to access.

What most people don’t realize is that there is a whole other world of investing out there –  in the Private Investment Markets.

 

And because it’s not as familiar, most investors tend to shy away from private investing thinking that it is too complicated or too risky to investigate further.

That’s where I come in because I spend most of my time educating people about this topic and helping them discover the private investing world and all it has to offer.

 

So what’s the difference between the two?  Let’s talk about it in a little more detail here…

THE PUBLIC INVESTMENT MARKETS

– These are the most common investment types found in the public markets and you can purchase them through the major banks and other publicly traded financial institutions.

– This is also known as the IIROC regulated world of investing (Investment Industry Regulatory Organization of Canada).

– Almost everyone uses one or more of these investment types as they are the most well known and easy to participate in.

All investment strategies have their pros and cons and these are all good options to get started in investing and grow your portfolio over time.

THE PRIVATE CAPITAL MARKETS

– Private investment strategies are largely found outside of the major banks and financial institutions.

– The Private Capital Markets are regulated by the Provincial Securities Regulators.

– The private capital markets are not as well known and it’s important to work with an experienced professional in the industry.

– There are a wide variety of investment opportunities available in the private capital markets and they primarily fall into 2 categories – The Exempt Market and Private Portfolio Management.

TO SUM UP

The Private Investment Markets can be an excellent space to potentially make higher returns on your investments.  It can also be a great option to add some great diversification to your portfolio.

Let’s take a step back though and I’ll tell you about a very simple investment strategy that anyone can use – “Investing: Keeping it Simple at Any Age“.

 

I really appreciate you reading my post!  If you would like to talk further, with no obligation, please contact me today.

 

Shannon Pineau
Exempt Market Dealing Representative

E: shannon@whitehaven.ca
C: 403-872-4010 TF: 1-855-872-4010

shannonpineau.com

 

This blog post is intended for information purposes only and does not constitute an offer to sell or a solicitation to buy securities. No securities regulatory authority or regulator has assessed the merits of the information herein or reviewed the information contained herein. This blog post is not intended to assist you in making any investment decision regarding the purchase of securities. Rather, the Trust has prepared an offering memorandum for delivery to prospective investors that describes certain terms, conditions and risks of the investment and certain rights that you may have. You should review the offering memorandum with your professional adviser(s) before making any investment decision. This blog post and the accompanying offering memorandum are intended for delivery only to, and participation in the investment is restricted to, investors to whom certain prospectus exemptions apply, as described in the offering memorandum.

PRIVATE WEALTH STRATEGIES – The Great Investing Alternative

At some point in their investing career, many investors will go looking for different options.  They want some alternatives to the “usual fare” of mutual funds and GIC’s and, in particular, they are looking for:

– Higher, more consistent returns

– Investments that don’t necessarily correlate with the public stock markets

Essentially, when you are in mainstream investments you tend to get mainstream results.

When everyone is invested in the same thing, the returns can be quite similar, and there is very little room for industry professionals to step outside of the box in order to achieve a better result.  I am speaking very generally here but I think you will understand the premise.

More importantly, when you are in the public markets, it can be very difficult to maintain any consistency with your investments.

There can be a lot of market volatility, particularly with all of the unrest – both politically and economically – in the world today.  This lack of consistency makes it difficult to grow your portfolio over time and it also makes it very difficult for seniors who are drawing on their investments to maintain their income levels.

One of the most common concerns that I hear from clients is that they wonder if the market will crash and, if it does, how long the downturn will last.

Private Wealth Strategies can be a great alternative for your investment portfolio.

I am very happy that you found my website in your search for new investment options.  I have a lot of information that I can give to you but I definitely don’t want to overwhelm you!

The Private Investment Markets are new to most investors so you can look through my blog for any information you like.  In order to keep things simple through this introduction though, I’ve put links at the bottom of each post if you want to go in order:)

Let’s start with the basics…”Public vs. Private Investment Markets – What’s The Difference?

 

I really appreciate you reading my post!  If you would like to talk further, with no obligation, please contact me today.

 

Shannon Pineau
Exempt Market Dealing Representative

E: shannon@whitehaven.ca
C: 403-872-4010 TF: 1-855-872-4010

shannonpineau.com

 

This blog post is intended for information purposes only and does not constitute an offer to sell or a solicitation to buy securities. No securities regulatory authority or regulator has assessed the merits of the information herein or reviewed the information contained herein. This blog post is not intended to assist you in making any investment decision regarding the purchase of securities. Rather, the Trust has prepared an offering memorandum for delivery to prospective investors that describes certain terms, conditions and risks of the investment and certain rights that you may have. You should review the offering memorandum with your professional adviser(s) before making any investment decision. This blog post and the accompanying offering memorandum are intended for delivery only to, and participation in the investment is restricted to, investors to whom certain prospectus exemptions apply, as described in the offering memorandum.

What To Do If You Experience a Loss In The Exempt Market

The Exempt Market is higher risk and so it can be expected that, at some point in time, you may experience an investment loss.  Whether it is a large or small investment though, losses can be very hard to deal with.

This is particularly true in the Exempt Market for a couple of reasons:

First, when an issuer runs into trouble, the losses can be quite significant.

Second, more often than not, losses can take a significant amount of time to realize.

With a stock, even if you are in a negative situation, you can still sell the stock and realize the loss.  You will likely still feel the same dismay at having lost money but it has happened and you can move on.  With private securities in the Exempt Market, the process can take a long time to wind everything down and crystallize what (if anything) you will be receiving back.  This tends to make it feel even worse because you continue to feel the loss through the whole wind up process.

So, if things don’t go as planned and you lose money in the Exempt Market, should you continue to invest there in the future? 

There’s a lot to take into consideration, and I’m here to help.

I’m going to lay it all out for you here – the pros, the cons – and then also make some recommendations based on your own particular situation.  After that, I feel you will be fully armed with the information you need to make an informed choice about your private investments.

FIRST STEP – REASSESS WHERE YOU ARE AT

Things change over time and it’s likely that your situation now is different than when you originally invested.  Here are 3 key things to consider right from the start:

YOUR FINANCIAL STATUS

It’s certainly possible that there have been some changes here, particularly related to oil and the economy over the last few years.

This review is important both to determine if you have funds available that you’d like to invest and also to determine if your “eligible” or “accredited” investor status has changed.

YOUR CURRENT ALLOCATION TO THE EXEMPT MARKET

In the past, there were not a lot of guidelines here – for Dealing Representatives or Investors. There were no investment caps and no formal recommendations about how much an eligible investor should place in Exempt Market securities.  There was also not a lot of history yet to guide these decisions.

In today’s Exempt Market, the Exempt Market Dealers make these recommendations for investors and WhiteHaven Securities (my EMD) recommends that “eligible” investors not invest more than 30% of their net financial assets in private securities (and that amount can be much less).  And of that 30%, not more than 10% in one particular investment.

With these percentages in mind, we can figure out how much of your current portfolio is made up of Exempt Market securities and then adjustments can be made as needed.

YOUR CURRENT SITUATION & FINANCIAL OBJECTIVES

Some of the key things to look at here are your age, your time horizon for investing and your risk tolerance.

It’s important to reassess the first two if you are nearing (or in) retirement, and very important to reassess your risk tolerance. It may have changed now that you have experience in the market and have seen some of the challenges over the years.

MY RECOMMENDATIONS AT THIS STAGE:

Taking this all into consideration, and looking at your own personal situation, I would be happy to sit down with you and make recommendations any time at your convenience.

But even if you are just going to read this post, I think you will be able to determine yourself if your situation has changed significantly in any or all of the areas discussed above.  Here’s what I recommend:

If your allocation to the Exempt Market is higher than 30% or even just more than you are currently comfortable with, and/or you are in retirement and looking for shorter term investments with instant liquidity and much lower risk, it is time to start diversifying out of the Exempt Market.  (P.S. If you land in this category, you can stop here and reach out to me.  I’ll meet with you, we can look at your whole picture and find some solutions to re-balance.  You’re also welcome to read on though – particularly if you feel you might want to revisit the Exempt Market in the future).

If your current higher risk allocation is less than 30% of your overall financial portfolio, and you still have some years ahead to save for retirement, you may want to consider investing more in the Exempt Market. 

 

SECOND STEP – REASSESS YOUR OPINION OF THE EXEMPT MARKET  OVERALL

Even though you can invest more in the Exempt Market, after experiencing a loss, you might question why you would want to.

This is where I come in to help because I’ve been in the private investment markets for a long time and I believe I can put it all in perspective and also tell you about a lot of positive things that have happened over the years for investors:

THE FIRST THING TO REMEMBER IS THAT INVESTING HAS RISKS. INVESTMENTS LOSE VALUE OR FAIL.  INVESTORS CAN LOSE MONEY

This is true of almost any type of investment and particularly in a high-risk market.  There will be gains and there will be losses as this is the nature of investing.

FORTUNATELY, THE EXEMPT MARKET CONTINUOUSLY EVOLVES & IMPROVES

Private investing is still very new to the average “eligible” investor. Generally, the ability to invest privately became mainstream around 2005 – 2008 and then came back strongly in 2011/2012.  To read a very Brief History of the Exempt Market click here but suffice it to say that every failed issuer and investment leads to the market becoming stronger and more transparent for investors.

YOUR EXPERIENCE IS INVALUABLE

You’ve gained experience in a market that can be very lucrative and is still largely unknown. This experience will take you forward and help you evaluate new opportunities.

TODAY’S EXEMPT MARKET OFFERS ISSUERS THAT ARE EXPERIENCED WITH STRONG TRACK RECORDS

Nothing is ever guaranteed but with less investment capital to go around, investors have access to the best investment opportunities that are available in this higher risk space.

DIVERSIFICATION IS KEY

Spreading your capital out among several issuers helps to mitigate your risk. With multiple, strong, experienced issuers in this market now, that is easier to do.

TODAY’S EXEMPT MARKET OFFERINGS HAVE A LOT MORE OPTIONS

Regular returns

Early redemption options

Various terms

Different industries instead of such a huge focus on real estate

YOU HAVE AN EXPERIENCED DEALING REPRESENTATIVE WHO WORKS WITH A STRONG EMD

This becomes extremely important as time goes on. A strong EMD will perform extensive diligence on the issuers and investments and have a track record to prove that.  An experienced Dealing Rep will have seen all sides of the Exempt Market and will always work in your best interests.

MY RECOMMENDATIONS AT THIS STAGE:

If a higher risk product is still suitable for a portion of your portfolio – the Exempt Market is, in my opinion, one of the best places to find the higher returns you’re looking for.  Here’s why.

TO SUM UP

Any type of investment loss can be hard to take but hang in there, reassess, re-evaluate and let me help you find the best opportunities to take your portfolio forward to retirement.

I really appreciate you reading my post!  If you would like to talk further, with no obligation, please contact me today.

Shannon Pineau
Exempt Market Dealing Representative

E: shannon@whitehaven.ca
C: 403-872-4010 TF: 1-855-872-4010

shannonpineau.com

 

This blog post is intended for information purposes only and does not constitute an offer to sell or a solicitation to buy securities. No securities regulatory authority or regulator has assessed the merits of the information herein or reviewed the information contained herein. This blog post is not intended to assist you in making any investment decision regarding the purchase of securities. Rather, the Trust has prepared an offering memorandum for delivery to prospective investors that describes certain terms, conditions and risks of the investment and certain rights that you may have. You should review the offering memorandum with your professional adviser(s) before making any investment decision. This blog post and the accompanying offering memorandum are intended for delivery only to, and participation in the investment is restricted to, investors to whom certain prospectus exemptions apply, as described in the offering memorandum.

What Is One Of Your Best Options To Make Higher Returns?

Almost everyone, at some point in time, wants to make higher returns on their investments.

The Usual Suspects

For most average or “eligible” investors, investing generally involves one or more of the following:

• Setting up a RRSP or TFSA account at a bank and investing in mutual funds
• Investing in stocks through a broker
• Setting up a discount trading account and buying and selling your own stocks
• Having a pension at work
• Having a RRSP savings program through work

There is nothing wrong with any of these strategies. They all have pros and cons but ultimately, they are helping you save money towards your goal of a great retirement. That is excellent in my books.

With employer plans, they generally hold the reins and their goal is to do well for you, so you can likely just sit back and let that happen. For personal registered accounts, you have a lot of choices for what you can invest in and generally, at some point in time, investors go looking for higher returns if they are not achieving the results they are hoping for with mainstream investment products.

Starting The Search

When you start looking for higher returns on your money – and by higher returns, I generally mean in the 7% + range – there are all kinds of different options that you can pursue. Things like:

Stock related opportunities like day-trading, options, futures, penny stocks etc. There is nothing wrong with this it just takes time to learn about and more often than not, novice investors lose money based on emotion or speculations that don’t pan out.

Investment real estate. I really like this strategy because I think it’s an excellent one that can generate some great wealth over time. There is a big learning curve here though and being a landlord comes with challenges so there is a lot to consider. A sound strategy though if you can take the time to learn.

Investments in real estate projects found in other countries. There is a lot of opportunity to be found in some of these places, but things can change in a hurry as regulation can be sparse and plans can be difficult to execute.

Investing with close family, friends or business associates. This can often work out well for accredited investors that are in the know and have larger sums to invest in sound projects. For the average investor though, investing with a smaller player, these often do not go as planned. Rather than the double digit returns that were promised, there are often strained relations instead.

Multi-level marketing. This usually works out well for the person at the top and the super social. For most people though, it’s hard to make it off the bottom rung and easy to alienate friends and family.

Get rich quicker scenarios. These come in all shapes and sizes and are always lurking out there for anyone that is searching out ways to make more money. Investors always need to be wary – particularly if something seems too good to be true.

So then what should you invest in that can possibly give you higher returns?

In my opinion – you should look straight to Canada’s Exempt Market and here are the reasons why:

• From a risk reward perspective – it is higher risk and that’s why the prospective returns are so much higher. But here, those risks are very transparent and well explained.

• It’s very well regulated and within a safe country that takes its regulations very seriously. To learn more about this and how the market has evolved through years to get to this point – click here.

• In order to offer an investment to clients, issuers have to be accepted by an Exempt Market Dealer. The EMD conducts a rigorous diligence process on the issuer to ensure they are a strong company with a sound plan and a great likelihood of success.

• Coming out of the downturn, there have been fewer investment dollars and therefore fewer issuers available offering private investments. In general, the ones that are available are top quality and, while there are always exceptions, they are the issuers that investors want to work with because of their experience, their track record, and their results.

• Issuers that I have offered in the past that have paid out their investors have averaged 8-10% annual return over the life of the investment.

• I am here for you. I’ve worked in the private investment markets since 2007 – I will make sure you understand everything there is to know about the Exempt Market and then help you decide if it is the right fit for you.

But is it Guaranteed?

So with all of these benefits – there must be some guarantee of success right?

NO!

There is absolutely no guarantee. It is a higher risk market and even with all of these safeguards, things can and do go wrong and investors can definitely lose money. It’s important to discuss all of this in the beginning to ensure that the Exempt Market is a good fit and also ensure you allocate the proper amount there.

On the other side of the coin though (and the reason investors continue to invest in the private markets), if you are well diversified across a few quality issuers, there is excellent opportunity for you to achieve the returns you are searching for. When we meet in the future, we’ll look at issuer results to date which will help to illustrate all of this for you.

There you have it. There are a lot of options out there to try and make higher returns on your investment but if you are looking for one of the most regulated, easiest to understand and safest (in a high risk space) places, along with a Dealing Rep that will help you every step of the way – you should definitely consider the Exempt Market.

 

We’ve reached the end of my posts in the Exempt Market Category of my blog but there’s still more to learn if you’re interested!  Because the Exempt Market is higher risk, it is generally only suitable for a smaller portion of your portfolio.  What about the rest you may ask?  There are options for all different types of investors and I invite you to start at “Private Wealth Strategies – The Great Investing Alternative.”

 

I really appreciate you reading my post!  If you would like to talk further, with no obligation, please contact me today.

 

Shannon Pineau
Exempt Market Dealing Representative

E: shannon@whitehaven.ca
C: 403-872-4010 TF: 1-855-872-4010

shannonpineau.com

 

This blog post is intended for information purposes only and does not constitute an offer to sell or a solicitation to buy securities. No securities regulatory authority or regulator has assessed the merits of the information herein or reviewed the information contained herein. This blog post is not intended to assist you in making any investment decision regarding the purchase of securities. Rather, the Trust has prepared an offering memorandum for delivery to prospective investors that describes certain terms, conditions and risks of the investment and certain rights that you may have. You should review the offering memorandum with your professional adviser(s) before making any investment decision. This blog post and the accompanying offering memorandum are intended for delivery only to, and participation in the investment is restricted to, investors to whom certain prospectus exemptions apply, as described in the offering memorandum.